Matamec Receives $1.1 Million from Toyotsu
MONTREAL, QUEBEC--(Marketwired - May 16, 2013) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is pleased to announce that the Company has received $1,100,558 CDN from its Japanese partner Toyotsu Rare Earth Canada Inc. ("Toyota" or "TRECan"), a subsidiary of Toyota Tsusho Corp. ("TTC"). The goal of the Kipawa mine project is to supply Toyota with heavy rare earths ("HREE") for the production and marketing of hybrid and electric vehicles.
To date Matamec has received $15,445,022 CDN of the maximum $16M CDN for the completion of a definitive feasibility study on the Kipawa HREE deposit, which is on budget and track for completion by the end of the second quarter of 2013.
"Matamec's team of professionals continue to deliver solid results as over 80% of the Kipawa feasibility study is near completion," said Andre Gauthier, President and CEO of Matamec Explorations. "We are most pleased to have Toyotsu as our strategic partner as their support positions Matamec favourably to take a key leadership position in becoming a leading global heavy rare earth company."
Under the terms of the Joint Venture Agreement ("JVA") by which TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit, Matamec received $8.5M CDN for the first 25% undivided interest on July 18, 2012. To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of $7.5M CDN. The $1,100,558 CDN is the seventh of a number of successive payments in the completion of the $7.5M CDN, but the eighth overall payment received from TRECan. Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of $7.5M CDN.